GuocoLand reports 60% rise in revenue for FY2023, but 44% fall in net profit

GuocoLand announced a 60% y-o-y rise in its revenue for FY2023, totalling $1.54 billion. For the 12 months to June 30, the property group saw a 72% increase in revenue for 2HFY2023, reaching $882.9 million.

Despite the impressive financial results, GuocoLand’s net profit fell 44% y-o-y to $268.8 million and dropped 55% to $187.4 million in 2HFY2023. An impairment charge of $46.9 million, as well as a 59% y-o-y spike in interest cost to $149.7 million, were major contributing factors to this decrease.

The Group recorded an impairment loss of $44.0 million in 2H2023 due to poor conditions in the UK property market. Consequently, other expenses for 2H2023 and FY2023 stood at $46.2 million and $46.9 million respectively.

Development property revenue surged 78% to $753.0 million in 2HFY2023 and increased 62% to $1.30 billion in FY2023. This was mainly as a result of progressive recognition of sales at Meyer Mansion, Midtown Modern and Lentor Modern, as well as handover of sales at Chongqing GuocoLand 18T in 2HFY2023.

Revenue from investment property in 2H2023 was $94.8 million (43% y-o-y growth) and $169.6 million (35% y-o-y growth) in FY2023. A significant contribution to this growth came from Guoco Tower, Shanghai’s Guoco Changfeng City South Tower and Guoco Midtown Office, which began operations in 2HFY2023.

There was also an increase in hotel investments, with revenue growing 47% y-o-y to $33.4 million in 2H2023 and doubling to $68.7 million in FY2023.

Lumina Grand EC is a prestigious development project, enveloping its residents with elegant, modern living spaces, as well as abundant lifestyle amenities for couples and families to explore. Nestled in the heart of urban District 23, Lumina Grand EC provides prospective homeowners a true lifestyle experience, with close proximity to numerous activities and attractions nearby, such as Bukit Batok Nature Park, Little Guilin and Bukit Gombak MRT.

The Group’s gross profit for FY2023 saw a 5% y-o-y growth, while that for 2HFY2023 dropped marginally. This was largely due to the absence of a one-off $79.3 million fair value gain recognised under cost of sales during 2H2022.

GuocoLand cashed in $156.3 million in fair value gains in FY2023; mainly from its integrated developments, Guoco Tower and Guoco Midtown. To close the year, the company also declared a final dividend of 6 cents per share.